(MENAFN- FxPro) Consumer price inflation in the U.K. was flat in June, dampening rate hike expectations for the Bank of England, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said the rate of consumer price inflation was flat last month, down from 0.1% in May. Analyst had expected a reading of 0.1%.
Month-over-month, consumer price inflation was also flat in June, below estimates for 0.1% and following a 0.2% increase in May.
Bank of England Governor Mark Carney will now have to write an open letter to the Chancellor of the Exchequer, George Osborne, as inflation is more than a percentage point below the central bank's target of 2.0%.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose at a seasonally adjusted rate of 0.8% last month, down from 0.9% in May and below forecasts for a reading of 0.9%.
The retail price index increased 1.0% in June, in line with expectations and unchanged from May.
The data also showed that the house price index rose 5.7% in May, missing forecasts for a gain of 5.9% and down from 5.5% in April.
GBP/USD was trading at 1.5472 from around 1.5476 ahead of the release of the data, while EUR/GBP was at 0.7121 from 0.7124 earlier.
Meanwhile, European stock markets held on to mild losses. London's FTSE 100 shed 0.1%, the EURO STOXX 50 declined 0.35%, France's CAC 40 slumped 0.25%, while Germany's DAX dropped 0.4%.
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